Changing your business from the promotional industry to the consumer industry means transforming your business model from a “middle man” to a retailer. Sellers of promotional products market branded products to customers for distribution or resale to their consumer market. For example, large companies purchase promotional items to give their clients, while tourist organizations sell them as souvenirs. To begin selling directly to consumers, you need to create a retail sales operation. You can open a physical location such as a store, or sell through e-commerce, mail order, telephone sales or home party sales.

1. Analyze the consumer market for the type of promotional items you sell. Identify who your customers are, the level of their need for your products and the projected value of their expenditure over your first year in business. This will help you decide whether to open a physical store or an online store, and whether to specialize in only a few items or to carry a wider range of products.

2. Find suppliers who manufacture the promotional products you plan to sell. Approach those from whom you currently purchase your promotional items and determine whether they will support your new venture into the consumer industry. Do research to identify additional suppliers who offer similar products and investigate their requirements for order placement.

3. Get quotations from all the suppliers you identify for the products you plan to purchase for sale. Ask for the minimum order quantities and cost breakdowns, and determine whether they will be prepared to supply goods on a consignment or sale-or-return basis, until your business is well-established. Ask each supplier for his company’s criteria to open a business account, the payment terms and discounts available.

4. Secure suitable premises for your retail outlet if you are planning to sell from a physical location. The success of the consumer goods industry relies heavily on the customer’s ability to see and touch the product. Install the necessary fixtures and fittings to display your products, as merchandising and inventory are critical to providing a good shopping experience.

5. Create an e-commerce store if you plan to offer online ordering of your products. Incorporate it into your website and provide details of all the items for sale, the pricing and delivery options, and a shopping cart application. You will need to offer various options for making online payments, such as credit cards payment, PayPal or other methods that your bank has available.

6. Obtain financing for your new consumer business, if necessary. For a physical store, you will need enough money to purchase inventory for customer displays. If you open an online or mail order store, however, you may need to pay only for a few samples because you can purchase the products as you receive orders for them.

7. Set up your outlet and market your new consumer venture through local newspapers. Create a website, share it on social media and ask friends and family to spread the news of your store to potential customers by word of mouth.

Things Needed

Market research

Premises (optional)

Product suppliers

Website designer

Finance (optional)

Warning

You may need a different kind of business license depending on your state and local laws. Make sure you research the laws to avoid legal problems.

About the Author

Tracey Sandilands has written professionally since 1990, covering business, home ownership and pets. She holds a professional business management qualification, a bachelor's degree in communications and a diploma in public relations and journalism. Sandilands is the former editor of an international property news portal and an experienced dog breeder and trainer.